Exim net up by 5 pc

Mumbai, Apr 28 (UNI) Export and Import (EXIM) Bank has posted an increase of five per cent in net profit at Rs 271 crore for the year ended March 31, 2006.

The State-owned bank, promoting India's exports, has recorded a 34 per cent increase in disbursements in FY-06 to Rs 18,028 crore, as against Rs 13,410 crore in the previous financial year.

With a net non-performing assets (NPAs) at 0.59 per cent, the bank's capital adequacy stood at 18.42 per cent.

During the year, the bank extended 20 lines of credit worth US dollar 836 million, covering 31 countries to support exports of projects, goods and services from India.

According to Exim Chairman and Managing Director T C Venkat Subramanian, the line of credits are the tools for Indian enterpreneurs, mainly from small and medium scale industries, to make an effective entry in the overseas markets and promote export of Indian goods and machineries.

With growing trend of India's basket of trade and industries, Exim has estimated its capital requirements at Rs 12,000 crore for the current fiscal year, of which Rs 7,000 crore would be borrowed overseas in foreign currency bonds with a tenure of 3 to 5 years, and the remaining would be borrowed in domestic market.

Mr Subramanian said the bank would continue to achieve an annualised 20-25 per cent growth rate in its loan portfolios.

During the year, the Government had infused Rs 100 crore to the bank's paid-up capital to meet its market borrowing capacity and the total paid-up capital of the bank was Rs 950 crore as on March 31, 2006.

UNI GC GK SKB1610